Types of Collection Accounts
Read the entire Series about this subject to understand everything before you DO anything about a collection account because you can seriously harm your FICO credit scores if you don’t study and apply what I know. More is to come!!
There are several different types of collection account. I break them down as follows:
Collection Agency, collects for other companies
Debt buyer, buys debts from other companies and collect for themselves.
Original Creditors, these are who you actually owe. Here’s a breakdown of these types:
Credit card or loan charge-off
Vehicle repossession debt, also a “collection” or ‘charge-off”
Judgment, the original creditor sued you and won
My firm deals with each TYPE of collection and each company different. We have two jobs:
Get as much discount for you as we possibly can
Get the deletion from all 3 credit reports if at all possible.
And we’re better than the lawyers I know at both of these jobs.
My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.
This will be a LONG series of advice and comments. Keep coming back!!
Did you know that waiting until near the due date to pay your credit cards is hurting your FICO credit scores?
ADVICE: Pay your credit cards in full two days BEFORE the end of the statement billing period.
Because your balances are generally reported within a couple or few days after that month’s statement cuts off, right when your balances are at their highest.
As most people these days know, the higher your credit card balances, the lower your FICO scores.